The World Economic Forum (WEF) describes the next stage of development as agentic AI with empathy. These systems extend beyond automation by integrating emotional awareness into decision-making and communication. They are built to interpret tone, intent, and sentiment, allowing AI to respond with contextually appropriate actions rather than predefined outputs. The WEF notes that this form of agentic intelligence could help organizations move from efficiency-based models to ones that combine operational precision with emotional connection. Research from Deloitte on affective computing shows how emotion-sensing technologies can reshape service interactions by detecting stress or confusion and dynamically adjusting communication. The relevance of these developments is growing in finance, where customer relationships depend on trust and perception. Emotion-aware systems could improve fraud detection by identifying stress indicators during authentication, assist in compliance by flagging linguistic signals of discomfort or hesitation, or personalize digital banking by adapting tone and pacing to a user’s emotional state. A Forbes analysis offers a cautionary perspective, emphasizing that AI-driven empathy remains imitation rather than intuition. Algorithms may mirror affect but lack the contextual reasoning and accountability that define genuine human connection. This suggests that emotion-aware systems should augment, not replace, human judgment, especially in sectors where ethical and relational stakes are high.